The Expectations-Augmented Phillips Curve Implies That as Expected Inflation Increases,nominal

question 103

Multiple Choice

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages ________ to prevent real wages from ________.

• A)fall;rising
• B)fall;falling
• C)rise;falling
• D)rise;rising

---

Definitions:

Credit Balance

The amount that appears on the right side of a ledger account, indicating that a liability has increased or an asset has decreased.

Debt Ratio

The debt ratio is a financial ratio that compares a company's total debt to its total assets, indicating the proportion of a company's funding that comes from debt.

Total Assets

Total assets refer to the sum of all current and non-current assets owned by a company, reflecting the total resources available for use.

Total Liabilities

Total liabilities refer to the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.